Young driverUnfortunately for youthful motorists, the cost of insuring them is often far more expensive than that of older age groups. Although this fact may seem unfair, the insurers use a formula to calculate rates and base premiums on the risk involved with covering certain groups whether it is by age or class. For instance, a “young driver” is usually considered by providers to be those who are between the age of 16 and 25 and a “high risk driver” can also be classified by age in addition to a high amount of tickets, violations, accidents and being convicted of driving under the influence of drugs or alcohol.

The major reasons that younger individuals pay more for coverage is both due to inexperience and the statistics that are used by carriers that show them to be riskier to insure. According to a study done by the North Dakota Department of Transportation, between 2001 and 2007 this age group accounted for 25.9% of all crashes although they only make up 11% of motorists. With this in mind, parents along with their children should understand the necessity of safe driving and learn how to find cheap car insurance for young drivers to help keep coverage affordable.

Tips for Finding Cheaper Car Insurance for Young Drivers

One of the first steps that should be taken when trying to lower the cost of coverage is to shop around and compare the rates of various different insurers; this should be done whether the youth will be added on to a parent’s existing policy or if they are seeking policies of their own. The reason that it is so important to compare auto insurance rates from various companies is simply because each insurer will charge a different amount. Although a parent may be paying a great rate with their current provider, this may not be the case once the youth is added; younger motorists who are going to obtain a policy of their own will have no idea who will offer the most reasonable premium, therefore a comparison is vital in order to locate an affordable rate.

Once rates have been obtained, they should be compared to see if the increase in the parent’s premium is more cost effective than if the youth were to get coverage on their own. One must remember that if a parent has a higher end or sports vehicle and their child has a more economical automobile of their own, it may not be beneficial for them to be listed as a driver for the more luxurious vehicle because it will only drive up the rates. If a younger driver is looking to purchase a car of their own it may be a good idea to avoid purchasing vehicles that will need comprehensive and collision which can cause premiums to raise quite a bit. It is also a good idea to get insurance quotes for vehicles being considered for purchase prior to acquiring the automobile due to the fact that although automobiles may be in the same price range, the cost to cover them can vary substantially.

The North Dakota Department of Insurance suggests that any discounts available should be taken advantage of. Many companies offer a discount to those who are considered a good student (maintaining a “B” grade point average or higher) and for completion of a defensive driver course. If adding a vehicle, insurers may also offer a multi-vehicle discount which may offset some of the cost of adding a new driver. With some diligent and effective shopping, younger motorists may be able to avoid paying overly inflated prices for premiums.